Rogers owes smartphone sales to iPhone, in iPad talks
updated 11:10 am EST, Wed February 17, 2010
Rogers smartphone shipments saved by Apple
Rogers today provided clues as to the influence of the iPhone on its business through its results for its last fiscal quarter of 2009. The Canadian carrier said that its total smartphone sales were roughly flat from year to year at about 400,000 but that it sold more iPhones than it did in late 2008, indicating that the Apple device helped save the company from a decline. Remaining smartphone sales were almost exclusively Android and BlackBerry.
The provider also directly credits the smartphone with improving much of the company's performance in other areas. Executives say the average revenue from iPhone and other smarthphone users is about double that of someone using a regular phone, at roughly $100 versus $50; the turnover among subscription customers has also dropped to a low 1.08 percent. Smartphone ownership has jumped dramatically in a year as 31 percent of all of Rogers' customers use a smartphone versus just 19 percent a year ago.
Despite Bell and Telus switching to HSPA for their networks and adding key Android and iPhone hardware, Rogers adds that it hasn't seen subscribers defect, in part because of its existing public image as the 'official' iPhone carrier.
Rogers also hinted at talks with Apple for an iPad deal. Although it's still "early days," the company admitted that it has a non-disclosure agreement with the American company and can't reveal any plans. Rogers won't have an exclusive on the iPad due to its unlocked nature but is likely under pressure to offer a data plan for 3G models similar to AT&T's $30 service.
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Alternative Interpretations
"sales were roughly flat from year to year at about 400,000 but that it sold more iPhones than it did in late 2008, indicating that the Apple device helped save the company from a decline"
OR
Customers were in the market for a SmartPhone and bought the iPhone. If the iPhone had not been there they would have bought another brand. I don't see this as indicating there would have been a decline without the iPhone.
"the turnover among subscription customers has also dropped to a low 1.08 percent." The implication being that customers satisfied with the iPhone were responsible.
OR
Due to long term contracts Rogers customers CANNOT leave. I know I'm trapped for another year. (Before someone else says it, yes I did sign the three year contract. That was over three years ago but I still have another year to go. What I didn't realize is that they take any possible opportunity to reset the clock. We made an adjustment to my wife's voicemail at the end of the first year. If we'd known that it would reset the clock we wouldn't have. Our mistake.)
"Despite Bell and Telus switching to HSPA for their networks and adding key Android and iPhone hardware, Rogers adds that it hasn't seen subscribers defect, in part because of its existing public image as the 'official' iPhone carrier."
OR
Rogers had a few months to a year head start. They got the iPhone first and locked the people who were most interested in the iPhone into long term contracts. It'll be another year or three before the defections start.
At some point I am going to get an iPhone. At this point though I'm not going to extend a three year ball and chain with a company that I already don't like. I'm going to wait until my current contract expires and I can start fresh with whichever company will give me what I want...
or get an iPT and Skype and tell Rogers to fornicate privately. Everywhere I go has WiFi.